From Washington State to California, public banking is full steam ahead in 2024! “In 2023, more than three-quarters of U.S. states have a group focused on public banking or a candidate with public banking as part of their platform…The Los Angeles City Council last year voted to fund a study on the feasibility of a public bank, and city supervisors in San Francisco approved a plan to start the process of establishing a municipal bank. This year, Philadelphia’s new mayor is expected to choose board members for the country’s first municipal public bank, which the city council voted to establish in 2022.”

Read the article in American Banker.

Thanks to Congresswoman Rashida Tlaib and Alexandria Ocasio-Cortez all our coalition partners across the country that helped craft this transformative bill! For too long, Wall Street has failed to meet the moment, pursuing profits over people’s needs. This allows us to finally build a sustainable alternative.

In California, we passed the CA Public Banking Act, AB 857, which established a regulatory structure to legalize and guide the efforts of municipalities and regions throughout the state. The federal Public Banking Act will build on and expand that framework nationally to aid efforts across the nation.

WASHINGTON D.C. — Today, Congresswoman Rashida Tlaib (MI-12) and Alexandria Ocasio-Cortez (NY-14) introduced the Public Banking Act of 2023, which facilitates the creation of state and local public banks. The bill establishes a robust federal regulatory framework, grant programs, and financial infrastructure to promote public banks and ensure their success. The bill also mandates minimum standards for public banks relating to environmental justice, tenant protections, labor standards, democratic governance, and consumer data privacy.

“Wall Street-run banks are failing to serve many of my residents who are struggling to make ends meet,” said Congresswoman Tlaib. “It’s long past time to open doors for people who have been systematically shut out. We must provide a better option for those grappling with the costs of simply trying to participate in an economy that has been rigged against them with discriminatory and predatory practices. We need a financial system that is democratically accountable and puts the livelihoods of our residents ahead of private profits.”

“The Public Banking Act provides much needed federal recognition and guidance for public banks,” said Trinity Tran, Lead Organizer for the California Public Banking Alliance. “Public banking is key to unlocking economic transformation for communities often overlooked or exploited by our current financial system, charting a path for cities and states to build a sustainable future that prioritizes environmental justice, tenant protections, democratic governance, and strong labor and workers’ rights.”

Read the press release: https://tlaib.house.gov/posts/tlaib-ocasio-cortez-introduce-public-banking-act.

KQED – “Interest in a statewide public banking option is also bubbling. In 2021, Gov. Gavin Newsom signed Assembly Bill 1177 into law, which called on the state to analyze what a statewide public option for personal financial services could entail. That analysis is due by July 1, 2024.”

Read: San Francisco Green-Lights Nation’s First Public Bank

KRON4 – The San Francisco Board of Supervisors voted unanimously to create the first municipal bank in the nation! The plans include a business & governance plan for a publicly-owned municipal financial corporation and then converting it into the San Francisco public bank.

Read SF supes vote unanimously for first municipal bank in nation.

The San Francisco Chronicle discusses the proposal to create the nation’s first municipal public bank in San Francisco to address the city’s housing crisis and economic challenges. Modeled after the Bank of North Dakota, the plan aims to fund housing projects for low- and middle-wage workers, support small business recovery, and promote a carbon-neutral future. The bank would partner with private banks rather than compete with them, generating funds that enable community banks to provide financing at lower interest rates. The benefits of a public bank include facilitating affordable housing and jump-starting small businesses. The article quotes Sylvia Chi, the Alliance’s Legislative Co-Director and member of the San Francisco Public Banking Working Group: “If we’re going to redevelop the Westfield Mall into something, they should use green building techniques and make sure it’s as efficient and sustainable as possible,” Chi said.” Although the bank’s cash reserves would be modest at first, it could grow to channel significant funds into community initiatives over the next decade. The proposal has been sent to the Board of Supervisors for examination and approval, and it aligns with California’s authorization for cities to explore public banking. The Bank of North Dakota’s success and impact on various sectors provide insights into how a public bank could benefit San Francisco.

Read the article in the San Francisco Chronicle.

The Los Angeles City Council has voted to fund the first phase of a public bank that would empower communities and support projects driven by public interest. A public bank would be more beneficial than private banks in serving Los Angeles’ Black and Latino communities, small businesses, green energy initiatives, and affordable housing projects. To tackle our housing crisis, the LA public bank could build or preserve over 17,000 affordable housing units within 10 years, assist with construction loans, convert housing into affordable stock, provide mortgage assistance, and prevent the conversion of affordable housing into upscale homes. Low-income communities of color stand to benefit greatly from a public bank, as it would offer lower-cost debt, free banking, alternative credit scoring methods, and help employees purchase small businesses. It’s a chance to create targeted wealth and job stability for neglected communities. The LA public bank would be funded by deposits from the city, pension funds, and green mutual funds, bypassing expensive Wall Street middlemen. This means more direct access to funds for local government projects. The LA Times interviews key figures, discussing the far-reaching impact of the public bank on communities across Los Angeles, including CPBA and PBLA co-founder Trinity Tran.

Read the coverage in the LA Times.

California cities, from Los Angeles to San Francisco to the East Bay, are moving full steam ahead on public banking! LA recently approved funding for Phase 1 to plan and implement Public Bank Los Angeles, SF Public Bank is working to fund a Municipal Finance Corporation that will scale up to a public bank, and Public Bank East Bay is making moves on a business plan for a regional public bank. California leads the way in the movement to reclaim public funds from Wall Street banks and reinvest them in local communities.

Read the article on Next City.

The California Public Banking Alliance and Public Bank East Bay organizer Susan Harman started a women’s public banking group with Women’s International League for Peace and Freedom to encourage women activists across the country to get involved in the public banking movement and promote the idea of a more equitable and locally-focused banking system that serve the needs of the community, prioritizing accessibility, transparency, and sustainability.

Read in Ms Magazine: Why Banking for the Public Good is no Pipe Dream.

The Alliance’s Rick Girling penned an op-ed discussing the banking system’s shortcomings following Silicon Valley and Signature Banks’ collapse. Advocates propose public banks to offer fair services and break the cycle of bank failures and bailouts.

Read the article on El Tecolote
Artwork: Mural Doctor

The public banking movement is gaining momentum in the United States as more people seek alternatives to traditional banking institutions. Unlike traditional banks that prioritize profit above all else, public banks aim to promote community development and social justice. Piper French, a journalist with Noema Magazine, recently spoke with Trinity Tran, George Syrop, and other organizers across the country to discuss the movement and its goals.

The rise of public banking is a response to the growing discontent with the banking industry’s practices, particularly in the wake of the 2008 financial crisis. Many people see public banking as a way to reestablish trust and accountability in the financial system. Public banks can prioritize the needs of local residents and businesses by focusing on community investment rather than profits for shareholders.

Read the article in Noema Magazine.